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Highlights:
Novomatic to acquire the remaining stake in Ainsworth Game Technology through a scheme of arrangement.
The offer from Novomatic values Ainsworth Game Technology significantly above its previous closing share price.
Ainsworth's independent board committee unanimously supports the proposed transaction.
Ainsworth Game Technology (ASX:AGI), an established name in the gaming technology sector, experienced a sharp rise in share price following a takeover announcement. The company specialises in manufacturing poker machines and other gaming technologies for various markets. A new agreement has been reached with Novomatic, an Austria-based gaming technology producer, involving the acquisition of Ainsworth's remaining shares.
Details of the Takeover Agreement
Novomatic, already the majority shareholder in Ainsworth Game Technology, has agreed to acquire the outstanding portion of shares it does not already own. The transaction places an overall company valuation significantly above Ainsworth’s most recent closing share price prior to the announcement. Novomatic’s offer is set at a fixed amount per share, reflecting a premium compared to the previous trading price.
The agreement is structured as a scheme of arrangement, subject to standard regulatory and shareholder approvals. Novomatic stated that the proposal is final and not subject to revision. The offer terms allow Ainsworth to distribute a dividend to shareholders before the completion of the transaction, which would be deducted from the final cash consideration.
Support from Ainsworth’s Independent Board Committee
Ainsworth Game Technology’s independent board committee has expressed unanimous support for the scheme of arrangement. The committee evaluated the proposal relative to the company’s medium and long-term business trajectory and alternative strategic scenarios. Following this review, the committee concluded that the proposal delivers compelling and definitive value to the shareholders.
Chairman Daniel Gladstone of Ainsworth Game Technology commented that the proposal reflects a significant premium to the company's long-term trading valuation. The evaluation process included a thorough comparison against the company's standalone prospects. The board’s endorsement signals a coordinated approach toward concluding the transaction under the agreed terms.
Market Reaction to the Announcement
Following the news of Novomatic’s offer, Ainsworth Game Technology’s shares witnessed a substantial increase during the trading session. The share price approached the value outlined in Novomatic’s proposal, indicating alignment with the announced terms. The uplift in Ainsworth's stock price highlights the market’s reception of the premium offered through the takeover arrangement.
Next Steps for the Acquisition Process
The progression of the takeover remains subject to customary conditions, including approval by Ainsworth’s minority shareholders and relevant regulatory bodies. Shareholders are scheduled to vote on the scheme of arrangement at a forthcoming meeting. Further updates on the transaction’s timeline and completion will be provided as the process advances through its required stages.
